Substantial fiscal spending initiatives and changes the trajectory of the budget could increase downward pressure on Australia’s AAA rating and outlook for Australia, ratings agency S&P said on Wednesday. Key quote While spending initiatives are likely to support the economy, they’re also likely to weaken Australia’s fiscal flexibility to respond to future unforeseen economic shocks. Australia’s second-quarter growth rate was the lowest since 2009. The Reserve Bank of Australia (RBA) sprung into action earlier this year, cutting rates by 25 basis points in June – the first rate cut since 2016. The central bank then delivered two more rate cuts – one in August and another one in October. Currently, the official interest rate stands at a record low of 0.75%. Markets are worried that RBA may end up hitting the zero lower bound next year. With S&P warning against fiscal imprudence, it appears the RBA will have to continue doing the heavy lifting. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next PBOC sets Yuan reference rate at 7.0349 FX Street 3 years Substantial fiscal spending initiatives and changes the trajectory of the budget could increase downward pressure on Australia's AAA rating and outlook for Australia, ratings agency S&P said on Wednesday. Key quote While spending initiatives are likely to support the economy, they're also likely to weaken Australia's fiscal flexibility to respond to future unforeseen economic shocks. Australia's second-quarter growth rate was the lowest since 2009. The Reserve Bank of Australia (RBA) sprung into action earlier this year, cutting rates by 25 basis points in June - the first rate cut since 2016. The central bank then delivered two more… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
